A 1.7% rise in the 20-city composite (year-over-year) is worse than expectations.
Home prices were down sequentially in 15 of the 20 markets. That’s the real story.
Says S&P’s David Blitzer: “There’s no way to sugar-coat this report.”
And bear in mind, this is all before the foreclosure-gate stuff hit.
Background: Analysts are looking for a 2% rise in the 20-city Case-Shiller index. That would be down a bit from the previous month, but bear in mind that this is an August number, and it also takes into account July and June, and there’s been a lot of sturm and drang since the period closed.
But this is the gold standard of housing indices, so it must be respected.